The document discusses current challenges in physical design for ASICs. Delays, especially from interconnects as technologies scale down, are a major challenge. Not all physical effects are accurately modeled in design tools. Some key challenges discussed are meeting timing constraints during floorplanning when interconnects are unknown, handling hard IP blocks, and balancing skew, insertion delay, and transition time during clock tree synthesis. Continued research is needed to better model physical effects and close remaining gaps in design flows.